95% Assured Return on your investment.
Lol! Pardon me.Just got your attention because of the title.
But, in today's real estate market many new builders have come up with assured returns and assured rentals, where in they promise to give you returns on your investment (on buying a property) for 90-95% down payment.
It was one of the magnetic approach to attract many investors as they could get more money from the builders on monthly basis than they would have got as rent or as interest from the bank.
Plus, white and black money can easily be adjusted when buying a property from various builders and still get high ROI.But,
What's the stat of the buyers who are actually satisfied after investing in such schemes?
Well, according to local survey done for past 1 year more than 29% of the investors are not happy with timely return of payment from the builders and 46% of the unsatisfied buyers fear that the new builder in the market might run away with their money any day! (people are not silly! they know how burnt fingers pain)
Video Source: Youtube.com
Buyers have to keep an eye on the builders activities and the builders today have to go an extra mile to satisfy and keep the trust of the investors till they finally deliver their promised properties with mentioned specifications.
Many buyers lie in the age group of 25-35 years and being clever and educated enough, they are now developing a sense of "NOT INTERESTED" attitude for such schemes because they have seen many people already suffer in the past!
WHY does a builder offer assured return schemes to buyers?
Builders are witty enough and know the right way to gather money.
Let's think like a builder now!
What if i wanna be a builder today but have limited funds to get out there in the market! This might be a game plan (business plan) of a new builder-
- Book a piece of land in a good location (payment can be made in 12 months time period )! Because in real estate its all about location!
- Get a brilliant design from a good architect
- An attractive brochure and a marketing team
- In-house Sales Executives (Agents)
- NOW, offer an attractive scheme like- 12% assured return till possession!
But, how and why can i offer such returns?
Simple! As a builder with limited funds, i have to beg banks to support me in getting me funds to run my company at a high interest rate of almost 18% PA.
So, what if I ask the buyers to help me in this instead? Why can't I offer them 12-14% returns if they invest with me?
That was a master stroke played by many new builders in the market and many have now settled easily but many are still struggling to cope up and give returns to investors as promised.
Timely possession is another major issue!
Will take up that issue soon...
http://www.realtytree.in
